Gold jumped to a record high above $5,500 an ounce, extending a breakneck rally fueled by US dollar weakness and investor flight from sovereign bonds and currencies.
Bullion jumped as much as 3.2%, building on a 4.6% leap in the previous session – the biggest one-day gain since the height of the Covid-19 pandemic in March 2020. Precious metals have risen dramatically this year on heightened geopolitical tensions and worries about the independence of the Federal Reserve, which have supported the debasement trade. Silver also hit an all-time high on Thursday.
Traders looked beyond the Fed’s widely expected decision on Wednesday to leave interest rates unchanged. With a new monetary chief expected to take over from Jerome Powell later this year, BlackRock Inc.’s Rick Rieder — an advocate for more aggressive rate cuts — has emerged as a top contender. Traders are ramping up bets on a dovish policy shift, which would benefit non-yielding precious metals.
Gold rose 1.1% to $5,477.36 an ounce as of 9:05 a.m. in Singapore, having earlier hit an all-time high of $5,588.71. Silver climbed 0.7% to $117.47 an ounce. Platinum and palladium edged lower. The Bloomberg Dollar Spot Index fell 0.1% on Thursday and was down 1.3% for the week. (Bloomberg)